PRIORITY DEVELOPMENT AREA «» («ALEKSIN» PDA)

Priority Development Area «Aleksin» is established in accordance with the Decree of the RF Goverment of 12.04.2019 №430 ALEKSIN CITY DISTRICT GENERAL INFORMATION MOSCOW

MOSCOW ADMINISTRATIVE CENTER ALEKSIN REGION

ALEKSIN Zаoksky

М6 М2 М4 KALYGA Yasnogorsk REGION TRANSPORT INFRASTRUCTURE Leninsky Venyov RYAZAN REGION CITY ROAD «CRIMEA» - 31 KM FROM ALEKSIN Suvorov Dubna TULA Novomoskovsk

Odoyev Shchyokino Kireyevsk DISTANCE TO MAJOR CITIES Belyov

Arsenyevo TULA KALUGA MOSCOW Tyoploye Volovo LIPETSK 70 КМ 60 КМ 180 КМ REGION

Kurkino Chern

RAILWAY MOTOR ROADS OF REGIONAL Arkhangelskoye LINE IMPORTANCE

«KALUGA-TULA» «TULA - ALEKSIN», «ALEKSIN - ZAOKSKY» ORYOL «ZHELEZNYA - ALEKSIN», «ALEKSIN - PETRISHCHEVO» REGION «ALEKSIN - PERSHINO» ALEKSIN CITY DISTRICT ECONOMY

POPULATION MANUFACTURE OF MACHINERY AND EQUIPMENT 38% 67 288 PEOPLE URBAN POPULATION - 57 950 PEOPLE OTHER NON-METALLIC RURAL POPULATION - 9 338 PEOPLE MINERAL PRODUCTS 18%

TRADE, SERVICES 16% NUMBER OF WORKING AGE PERSONS ENERGY INDUSTRY 9% 35 110 PEOPLE CHEMICAL PRODUCTION 8% SECTORAL STRUCTURE OF THE «ALEKSIN» PDA OF

AVERAGE MONTHLY CARDBOARD 7% SALARY (2018) PRODUCTION 30 015 RUBLES OTHER 7% ALEKSIN CITY DISTRICT LARGEST COMPANIES

Research and Production Association «Tyazhpromarmatura» is a core machinery manufacturing enterprise of the city, which specializes in design Zаoksky and production of lock and pipeline valves for gas industry, petroleum industry, chemical industry and power industry. High quality of manufacturing products, progressive design and technological decisions allow company to hold leading positions in a field of pipeline valves production for years. The new production unit were launched in 2015 – that was a Sukhodolsky plant of special heavy machine building, which is focused on pipeline valve billets production using the Aleksin latest technologies. Yasnogorsk Aleksinsky research mechanical plant was established in 1898 as a glass and mirrors manufacturing plant. Nowadays the main focus of the plant’s work is non-standard technological equipment production, including equipment designed according to customer’s requests. Production base includes machine-assembly department, preparation shopfloor, boil-welding shopfloor, toolroom and shopfloor of mass consumption goods production, industrial Leninsky rubber products manufacturing and electrolyte coating shopfloor. Aleksinsky Glass Factory manufactures more then 300 tipes of colorless, brown and green glassware used for packing in food industry, beer and alcohol industry, food for infants and food preservation. The total production capacity is 700 million pieces of glassware per year. Two glass-melting furnaces, having a capacity of 360 tons of glass melt per day, give possibility to produce a wide range of glassware. Suvorov Dubna

Aleksin paper and cardboard factory is one of the leading manufacturers of cardboard made of recyclables in the Central region of the Russian Federation. Shchyokino Company produces recycled packaging cardboard: cardboard for thin layers of SFT Liner and corrugating paper SFT Medium. In 2005 Factory joined SFT Group, Odoyev developed production of new types of cardboard for the enterprise: core board and book board. In 2017 a large-scale modernization work of paper production was carried out. It gave the possibility to increase production capability of the company up to120 000 tons per year, to improve the quality of products Kireyevsk significantly, to widen the product range of the enterprise with new types of production. Belyov

Arsenyevo The agricultural sector of Aleksin Region is represented by such companies as: agricultural production cooperative «Avangard», LLC «Agricultural enterprise Plavsk «Green rock», LLC «Black bread», LLC «Hamsin Grass», LLC «Novok Korovino», LLC «Agroconsalt». Tyoploye In the field of food industry, business activities are carried out by : public joint-stock company «Aleksin bakery», JSC «Aleksin city milk factory», JSC «Aleksin meat-packing plant», GC «Cheroka», LLC «Alkon» Volovo

Чернь ALEKSIN PDA TAX BENEFITS

CORPORATE INCOME TAX (В СООТВЕТСТВИИ СО СТ. 284 НАЛОГОВОГО КОДЕКСА РОССИЙСКОЙ ФЕДЕРАЦИИ И В СООТВЕТСТВИИ 0% 12% Р С ЗАКОНОМ ТУЛЬСКОЙ ОБЛАСТИ ОТ 18.12.2017 №103-ЗТО «О ЛЬГОТНОМ НАЛОГООБЛОЖЕНИИ НАЛОГОПЛАТЕЛЬЩИКОВ-РЕЗИДЕНТОВ ТЕРРИТОРИИ ОПЕРЕЖАЮЩЕГО СОЦИАЛЬНО- FIRST 5 YEARS, 6-10 YEARS FROM THE MOMENT OF ЭКОНОМИЧЕСКОГО РАЗВИТИЯ, СОЗДАННЫХ НА ТЕРРИТОРИИ ТУЛЬСКОЙ ОБЛАСТИ») RECEIPT OF THE FIRST PROFITS

COMPANY PROPERTY TAX (В СООТВЕТСТВИИ С ЗАКОНОМ ТУЛЬСКОЙ ОБЛАСТИ ОТ 18.12.2017 №103-ЗТО «О ЛЬГОТНОМ 0% 1,1% 1,5% НАЛОГООБЛОЖЕНИИ НАЛОГОПЛАТЕЛЬЩИКОВ-РЕЗИДЕНТОВ ТЕРРИТОРИИ ОПЕРЕЖАЮЩЕГО 1-5 YEAR, 6-7 YEARS 8-10 YEARS СОЦИАЛЬНО-ЭКОНОМИЧЕСКОГО РАЗВИТИЯ, СОЗДАННЫХ НА ТЕРРИТОРИИ ТУЛЬСКОЙ ОБЛАСТИ») FROM THE MOMENT OF OBTAINING OF THE STATUS OF THE PDA RESIDENT % LAND TAX 0% FOR 10 YEARS

INSURANCE CONTRIBUTIONS TO NON-BUDGET FUNDS OF THE RF (IN ACCORDANCE WITH SUBPARAGRAPH 12 OF PARAGRAPH 1 AND SUBPARAGRAPH 5 OF PARAGRAPH 2 OF ARTICLE 427 OF THE TAX CODE % % OF THE RUSSIAN FEDERATION) 7,6 UP TO 10 YEARS (INCLUDING 6%- PENSION RF, 1,5%- CSI RF, 0,1% - CHI RF) «TULA - ALEKSIN», «ALEKSIN - ZAOKSKY» «ZHELEZNYA - ALEKSIN», «ALEKSIN - PETRISHCHEVO» «ALEKSIN - PERSHINO»

ALEKSIN PDA REQUIREMENTS FOR PDA RESIDENTS

INVESTMENT PROJECTS REQUIREMENTS FOR OBTAINING THE STATUS OF A PDA RESIDENT (IN ACCORDANCE WITH GD OF RF NO. 614)

REGISTRATION OF A LEGAL ENTITY ON THE TERRITORY OF A MONOTOWN

BUSINESS ACTIVITY IS CARRIED OUT EXCLUSIVELY ON THE TERRITORY OF A MONOTOWN

THE NUMBER OF WORK PLACES CREATED - AT LEAST 10 PLACES DURING THE FIRST YEAR, AT LEAST 30 DURING THE PROJECT IMPLEMENTATION PERIOD

A PDA RESIDENT CANNOT BE A CORE ENTERPRISE OF A MONOTOWN OR ITS SUBSIDIARY COMPANY

THE VOLUME OF FOREIGN EMPLOYEES DOES NOT EXCEED 25 PERCENT OF THE TOTAL NUMBER OF EMPLOYEES

THE AMOUNT OF CAPITAL INVESTMENT IS AT LEAST 2.5 MILLION RUBLES DURING THE FIRST YEAR

THE AMOUNT OF EARNINGS GAINED FROM COOPERATION ACTIVITIES WITH A CORE ENTERPRISE OF THE CITY DOES NOT EXCEED 50 PERCENT OF ALL INCOME

THE PRODUCTION OF EXCISABLE GOODS (WITH THE EXCEPTION OF CARS AND MOTORCYCLES) IS NOT INCLUDED

THE EXTRACTION OF CRUDE OIL AND NATURAL GAS; THE PROVISION OF SERVICES IN THE FIELD OF OIL AND NATURAL GAS EXTRACTION; PIPELINE TRANSPORT FIELD; PRODUCTION OF PETROLEUM PRODUCTS; WHOLESALE AND RETAIL TRADE; LOGGING; REAL ESTATE TRANSACTIONS – ARE NOT INCLUDED ALEKSIN PDA REQUIREMENTS FOR INVESTMENT PROJECTS ALLOWED TYPES OF ECONOMIC ACTIVITY WITH AN INDICATION OF MINIMUM INVESTMENT VOLUMES FOR RESIDENTS OF PDA “ALEKSIN” (IN ACCORDANCE WITH THE DECREE OF THE GOVERNMENT OF THE RUSSIAN FEDERATION OF 12.04.2019Г. №430)

Crop production and livestock business, hunting and provision Production of chemicals and chemical products of related services in these fields 25 mln rubles 25 mln rubles Production of medicaments, and components used Manufacture of food products 25 mln rubles for medical purposes 25 mln rubles

Production of computers, electronic and Non-oil and non-gas extraction and mining 25 mln rubles optical products 25 mln rubles

Manufacture of food products 25 mln rubles Manufacture of electrical equipment 25 mln rubles The production of non-alcoholic drinks; mineral water and other Production of vehicles, trailers bottled drinking water production 25 mln rubles and semitrailers 25 mln rubles

Manufacture of other vehicles Textile products manufacturing 25 mln rubles and equipment 25 mln rubles

Garment production 25 mln rubles Furniture manufacturing 5 mln rubles

Activities related to providing people with places Production of leather and leather products 25 mln rubles of temporary accommodation 25 mln rubles Wood treatement and the manufacturing of wood and cork products except production of straw-work goods and goods 25 mln rubles Healthcare activities 25 mln rubles made of plaiting materials Production of paper and paper products 25 mln rubles Архангельское ALEKSIN PDA STEPS IN GETTING RESIDENT STATUS

FOR LEGAL ENTITIES HAVING EXISTING FOR NEW LEGAL ENTITIES PRODUCTION CAPACIT 1. Registration of a legal entity on the territory Aleksin municipality 1. Submission of an application for a conclusion of the agreement to the administration of the municipal district 2. Providing municipal administrations with an application for a conclusion of the agreement 1.1 Passport of the investment project (in due form) 2.1 Passport of the investment project (in due form) 1.2 Key indicators of the investment project (in due form) 2.2 Key indicators of the investment project (in due form) 1.3 Business plan of the investment project (in form) 2.3 Business plan of the investment project (in due form) 1.4 Copies of constituent documents 2.4 Copies of constituent documents 1.5 Document, which approves that the implementation of the investment project does not imply the performance of 2.5 Document, which approves that the implementation of the investment project does not imply contracts concluded with core enterprise of Yefremov single-industry town or its subsidiaries and (or) receiving the performance of contracts concluded with core enterprise of Yefremov single-industry town or revenues from selling of products to, the provision of services to the core enterprise of Yefremov single-industry town its subsidiaries and (or) receiving revenues from selling of products to, the provision of services to or its subsidiaries in amount exceeding 50 percent of all income received from the sale of goods (services) produced the core enterprise of Yefremov single-industry town or its subsidiaries in amount exceeding 50 (provided) as a result of the implementation of the Applicant's investment project percent of all income received from the sale of goods (services) produced (provided) as a result of Document, which approves that the implementation of the Applicant's investment project, does not require the the implementation of the Applicant's investment project 1.6 2.6 Document, which approves that the implementation of the Applicant's investment project, does engagement of foreign labor force in an amount exceeding 25 percent of the total number of employees; not require the engagement of foreign labor force in an amount exceeding 25 percent of the 2. Providing a certificate indicating the average number of employees of a legal entity for the last 3 years (or for the total number of employees period of its existence, if it exists less than 3 years), issued by the State statistical agencies (for small enterprises - 3. The conclusion of an agreement on the implementation of activities on the Priority Development certified by the head of the organization) Area «Aleksin» 3. Providing the information stated in the consolidated State register of legal entities; (for the date of not earlier than one year preceding the year of application submission with simultaneous application of the original) 4. Providing the information on the Applicant’s registration with the tax authorities on the territory of Aleksin 5. Providing information on the fulfillment by a taxpayer (payer of a fee, tax agent) of the obligation to pay taxes, fees, penalties, fines, interest (presented as of not earlier than the last reporting date) 6. Providing information on the status of payment of insurance contributions , penalties and fines (submitted as of not earlier than the last reporting date) 7. Providing information on the absence of commencing of insolvency (bankruptcy) proceedings against the Applicant and / or reorganization or liquidation of a legal entity that the Applicant has a relation to in accordance with the legislation of the Russian Federation 8. The conclusion of an agreement on the implementation of activities on the Priority Development Area «Aleksin» RESIDENTS OF «ALEKSIN» PDA

LLC “Three A Plus”

CONSTRUCTION OF THE BAKERY PLANT, THE HIGH-TECHNOLOGY OKVED IMPLEMENTATION INVESTMENT JOBS INDUSTRIAL GREENHOUSE COMPLEX, LOGISTIC CENTER AND PERIOD VOLUME VEGETABLE PROCESSING PLANT 10.71 2019-2021 2 000 200 Production of bread and pastry, mln rub cakes and pastries short-term storage

PJSC “Aleksin meat cutting plant”

INVESTMENT PROJECT OF THE DEVELOPMENT OF THE OKVED IMPLEMENTATION INVESTMENT JOBS OPERATING PLANT PERIOD VOLUME 10.13 2019-2022 249 350 Production of meat mln rub and poultry meat products RESIDENTS OF «ALEKSIN» PDA

LLC “PDPM Laktoprom”

MILK PROCESSING PLANT OKVED IMPLEMENTATION INVESTMENT JOBS PERIOD VOLUME 10.51.9 2019-2020 2 800 45 Production mln rub of other dairy products

LLC “Tekhnocompost”

CONSTRUCTION OF THE COMPOST MACHINE PLANT OKVED IMPLEMENTATION INVESTMENT JOBS “COMPOSTER” PERIOD VOLUME 28.30 2020-2022 300 100 Production of machinery and mln rub equipment for agriculture and forestry ALEKSIN PDA SUPPORT MEASURES OF INVESTMENT ACTIVITIES

GOVERNMENT OF THE TULA REGION

ALLOCATION OF LAND SITES WITHOUT HOLDING TENDERS PROVIDED THAT PROJECTS ARE IMPLEMENTED IN THE TULA REGION (Decree of the Government of the Tula Region of 01.06.2017 No. 214 “On measures of implementation of certain provisions of the law of the Tula Region dated July 5, 2016 No. 61-LTR “On the establishment of criteria that socio-cultural and public utilities shall meet, large-scale investment projects for the placement (implementation) of which it is allowed to provide a state or municipal land plot for rent without tendering”)

CONSTRUCTION OF TRANSPORT, ENERGY AND ENGINEERING INFRASTRUCTURE, AS WELL AS FOR THE IMPLEMENTATION OF CONCESSION PROJECTS AT THE EXPENSE OF THE INVESTMENT FUND OF THE TULA REGION

(in accordance with the Decree of the Government of the Tula region dated December 18.12. 2013 No. 759 “On approval of the procedure for the formation and use of budget allocations of the investment fund of the Tula region”)

SUBSIDIZING THE CONSTRUCTION OF TRANSPORT, ENERGY, AND ENGINEERING INFRASTRUCTURE OBJECTS, INCLUDING LINEAR OBJECTS OF THE FUEL AND ENERGY INDUSTRY, AS WELL AS BUYING BACK OF LAND IN ORDER TO IMPLEMENT HERE CAPITAL DEVELOPMENT THAT IS NECESSARY FOR INVESTMENT PROJECTS OF TRANSPORT, ENERGY, AND ENGINEERING INFRASTRUCTURE IMPLEMENTATION. (in accordance with the Decree of the Government of the Tula region dated 03.16.2013 No. 354 “On approval of the rules for granting subsidies from the budget of the Tula region to organizations that have made investments in the form of capital investments on the territory of the Tula region”) ALEKSIN PDA SUPPORT MEASURES OF INVESTMENT ACTIVITIES

Construction and subcontracting construction organizations Authorities 1 2 of the Tula Region TULA REGION DEVELOPMENT CORPORATION “ONE STOP SHOP” 3 Federal SUPPORT PROCEDURE authorities

4 24/7 Banks Р 5 Regional INVESTOR development institutes

6 Natural 8 7 monopolies

Municipalities Federal development institutes ALEKSIN PDA DEVELOPMENT INSTITUTES FUND OF MONOCITIES DEVELOPMENT SME SUPPORT

FINANCING OF INVESTMENT PROJECTS REGIONAL SUPPORT OF SME SUBJECTS FORM OF PARTICIPATION MICROLOANS - Provision of interest-bearing loan - Amount - up to 5 million rubles - Duration - up to 3 years TERMS OF PROVIDING SUPPORT BY THE FUND - Rate - 3% per annum -Loan amount - from 5 to 1000 million rubles - Interest rate: SUBSIDY PROGRAM 0% per annum (for loans up to 250 million rubles) 5 % per annum (for loans over 250 million rubles) SME CORPORATION - Period - up to years 15 - Rate up to 8.5% per annum - Loan deferment - not more than years 3 - For investment purposes - from 3 million to 1 billion rubles - Period up to 10 years REQUIREMENTS FOR THE PROJECT AND THE PROPONENT (BORROWER) - For replenishment of working capital - from 3 to 100 million rubles - PROPONENT (borrower) - individual entrepreneur - Period up to 3 years (for loans up to 250 million rubles) or legal entity, resident of - Subsidies recipients - authorized banks that have been selected Russian Federation - Time-line of subsidy payments to banks – each monh - The proponent has no arrears to the budget and funds - The existence of a socio-economic benefits for a single-industry town SME UNITIES LOAN STIMULATION PROGRAM - Credit ceilings not less than 3 million rubles - up to 10.6% APR for SMALL enterprises LIMITATIONS - up to 9.6% per annum for medium-sized enterprises - The participation of the Fund in the project is not more than 80% of the total project cost - The resources of the Fund can only be directed to capital investments - The actual concluded General Development Cooperation Agreement made GUARANTEE SUPPORT FOR SMES with a Russian subject, in relation to a single-industry town. (on joint implementation of the integrated project) SME CORPORATION 83 RGO - Provision of surety - Provision of guarantee CO-FINANCING OF INFRASTRUCTURE FACILITIES - Amount - from 100 million rubles - Amount – up to 25 million rubles The Fund provides free of charge financial resources to the budget of the Subject of the Russian Federation in the amount of up 95% to the cost of infrastructure facilities SME BANK - Warranty WATER SUPPLY WATER DISCHARGE GAS SUPPLY ELECTRIC SUPPLY - Amount - 25-100 million rubles MOTOR ROADS RAILWAYS ROADS ELECTRIC SUPPLY COMMUNICATION ALEKSIN PDA DEVELOPMENT INSTITUTES

PROGRAMMS OF INDUSTRIAL DEVELOPMENT FUND OF THE TULA REGION

PROGRAM «DEVELOPMENT PROJECTS» PROGRAM «COMPONENTS» - Loan amount - from 20 to 100 million rubles - Loan amount -from 20 to 100 million rubles - Loan period up to 5 years - Loan period up to 5 years - The base rate is 5%, 3% with a bank guarantee for the first 3 years, 3% in case of - The rate of 1% in the first three years, during the remaining period - 5% the purchase of Russian equipment, 1% in case of export - Co-financing by the applicant - 20% - Co-financing by the applicant - 50% RF INDUSTRIAL DEVELOPMENT FUND PROGRAMS

PROGRAM PROGRAM PROGRAM PROGRAM "DEVELOPMENT PROJECTS" «COMPONENTS» «COMPONENTS» "CONVERSION"

- Loan amount- from 50 to 500 million rubles - Loan amount - from 50 to 500 million - Loan amount - from 50 to 500 million - Loan amount from 80 to 750 million - Loan period - up to 5 years rubles rubles rubles - The base rate is 5%, and 3% in case ov - Loan period -up to 5 years - Loan period - up to 7 years - Loan period - up to 5 years receiving a bank guarantee for the first 3 years, - Rate 1% in the first three years, for the - The rate of 1% in the first three years, for - The rate is 1% in the first three years, for 3% in case of the purchase of Russian remaining period - 5% the remaining term of 5% the remaining period of 5% equipment, 1% in case of export - Co-financing by the applicant - 20% - Co-financing by the applicant - 20% - Co-financing by the applicant - 20% - Co-financing by the applicant - 50%

PROGRAM PROGRAM PROGRAM PROGRAM "FINANCE LEASE" “MARKING OF MEDICAMENTS ” "DIGITALIZATION OF INDUSTRY" “LABOR PRODUCTIVITY”

- Loan amount - from 5 to 50 million rubles - Loan amount - from 20 to 500 million rubles - Loan amount - from 50 to 300 million rubles - Loan amount from 5 to 500 million rubles - Loan period up to 2 years - Loan term up to 5 years - Loan period - up to 5 years - Loan period up to 5 years - 1% rate - 1% rate in case of using software of the - Payment 1% - 1% rate Russian Federation or system integrator, - Co-financing by the applicant - 20% - The maximum loan amount of the Fund is in other cases - 5% up to 27% of the total cost of industrial - Co-financing by the applicant - 20% equipment

TULA REGION DEVELOPMENT CORPORATION

4, Mendeleevskaya Street,Tula Тел. : (4872) 338 - 008 E-mail: [email protected] invest-tula.com